Marketing:

By definition, marketing is studies of the market.

What does google say about it?

“the action or business of promoting and selling products or services, including market research and advertising.”

“the Western arts of marketing and distribution”

By definition, marketing is studies of the market. What google says about marketing;

“The action or business of promoting and selling products or services, including market research and advertising.” by “the Western arts of marketing and distribution”.

According to BusinessDictionary.com ;

The management process through which goods and services move from concept to the customer. It includes the coordination of four elements called the 4P’s of marketing:

(1) identification, selection, and development of a product,

(2) determination of its price,

(3) selection of a distribution channel to reach the customer’s place, and

(4) development and implementation of a promotional strategy.
So here comes the terms market. What is the market?

Well, a market is an exchange between two parties frequently we called it buyers and sellers. If we think about a single buyer and a single seller then it’s fine. But the real market is not like this. It’s very complicated and the number of sellers and buyers is not constant.

Let’s take a look more closely at the seller’s market and buyer’s market.

Seller’s Market:

That is only 1 seller who has the product and the consumer, the customer wants that product. That is Seller’s have all control over the market.  This is called the product focus market.

There are many sellers for the same kind or same featured goods or services and there is a lot of buyer for the services. That is all control has on the grip of Buyers. Here sellers focus on customers and more competition attends here.

That is why the marketing for both two-stream of the market should not be the same.

Here are some features about the product focus market:

• Sellers have the product or services and they have all control over that product and services.
• The seller should get more attention to develop the product and services.
• Trying to reduce the cost.
• The business objective is to sell as much as a product to increase market share.

By increasing market share means revenue is high, costs are going lower and profit increases.

Buyer’s Market:

Buyer’s Market or Customer focus market is often called the outside-in marketing. Where seller’s market is inside out. i.e. focusing on product to sell is seller’s market marketing and meeting the customer needs is outside in marketing concepts.

The customer focus market is based on creating values for customers. Find the customer’s wants and need and deliver the needs to that customer.

But here is the problem arise again every and each customer have different needs. It is not possible for any business to meet all customer demand at a time. But it should be focused on the target group of customers. The intuition of customer focus marketing is to pick and choose customers. Deliver value to some customers and not to another customer. Then again problem arise-how can be the business be profitable if I say “no” to some customer? Well, recall the product-focused market we said sell as much we can to anyone. But in the customer focus market choose and pick the customer segment or group deliver the value to the customer group or segment and they will be ready to pay premium prices for your product and services. That is your business be profitable by premium prices from customers. For creating value customer is willing to pay you the premium prices and that is how customer focus market can be profitable.

So here objective is not reducing cost but adding values and increasing the premium price to make it more profitable. There are so many other ways to make a profit in value-based marketing like building customer loyalty. That is not to sell one time for but sell times after and after. That concept is called customer share.

Another way to increase profitability in customer focus market is cross-selling. When you have loyal customers then you can sell other products or services to the customer.